RAEX Rating Agency (Expert RA) assigned credit rating to AK BARS Bank at ruA- (moderately high level of creditworthiness) with stable outlook

Agency evaluated the Bank’s key indicators: assets, equity, borrowed funds, individual bank deposits, loan portfolio, additionally, assets and equity growth rates, individual and corporate loans.

The main factors that have had a positive impact on the rating level are the high possibility of the financial support from shareholders, the strong position of the bank in the region, a wide branch network, positive financial results for 2016-2017 upon approval of the bank’s long-term strategy, high quality of corporate management and improving quality of the bank’s assets.

According to the RAEX, the stable equity position is determined by the growth of the capital stability with regard to possible large loans impairment. That was ensured by the implementation of measures aimed at both increasing the authorized capital and selling a significant amount of non-core assets from the bank’s balance. The rating positively reflects satisfactory level of banking operations expenses coverage by net interest and bank’s fee income.

Rating agency noted satisfactory assets quality including loan and securities portfolio. The agency noted duration of the corporate borrowers quality base forming and the bank’s balance high liquidity.

The rating also reflects significant liquidity cushion: N2 (Quick liquidity) ratio exceeded 160%, N3 (Current liquidity) ratio — 390% as of 1 March 2018. The ratio of highly liquid assets to raised funds amounted to 16%, and ratio of liquid assets to raised funds was more than 50%.

The level of corporate management is assessed positively in light of the changes within the Bank’s key top managers and the acceptance of the Development strategy for 2017-2021, which takes into account various scenarios and areas of the Bank’s development in business segments.

«High rating assignment from RAEX Rating Agency objectively reflects stable position of the Bank and the success of the chosen development course. The Bank is focused on the client centric model, which implies business growth through building long-term and mutually beneficial cooperation with customers, providing optimal solutions for both private and corporate customers. The Bank intends to continue to strengthen its position in the Russian financial market, create competitive advantages for the future» Commented Zufar Garaev, Chairman of the Board of Ak Bars Bank.

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